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» The Financial Obligations of Bankruptcy
The Financial Obligations of Bankruptcy
Debt can be extremely helpful. However, like anything, moderation is necessary as too much of it can be a drag. America has found out the hard way that too much debt can suck the life out of your pocketbook, emotions, and well-being. While debt can be debilitating, there is a way out. The federal government set up a plan that enables everyday, hard-working people to get out from under the weight of debt: bankruptcy.
For some people, the word itself carries a stigma as heavy as the weight of debt, yet this view is short-sighted. Much of the stigma is myth spewed by debt consolidation, debt settlement and credit counseling companies who make a living off of convincing people that they can get you out of debt without actually discharging any of it. While bankruptcy is not without financial obligations, it is much less so than many of the other solutions people turn to for dealing with debt.
So how much does bankruptcy cost and what are your financial obligations if you file? The cost to file is around $200 for a Chapter 7 case and $185 for Chapter 13. This includes case filing fees, administrative fees, and trustee surcharges. In addition to these fees, there are legal fees, which vary from lawyer to lawyer.
For Chapter 7 bankruptcy, also referred to as liquidation bankruptcy, a trustee gathers and sells all non-exempt property and assets in order to pay off creditors. While this may seem like a terrible proposition, for individuals who owe more money on their home than it is worth, it can be a life-saver. Once this is completed, all debt is completely discharged - for good.
For Chapter 13 bankruptcy, the debtor proposes a payment plan that must pass a means test to be approved. The payment represents either full satisfaction of your debts or your income left over after you have paid for taxes and necessary living expenses for three to five years. Once the plan is confirmed and the debtor pays monthly payments for three to five years, the full debt is fully discharged.
If you are seriously considering filing bankruptcy in Louisiana and want to find out more details about the impact filing will have on your future, contact the firm that focuses exclusively on Louisiana bankruptcy laws: Kirkpatrick and Associates. Every day, the Metairie bankruptcy lawyers from Kirkpatrick and Associates helps people save their homes, their cars, and wipe out their debts from $5,000 up to $300,000. They know all of the intricacies of filing bankruptcy in Louisiana because bankruptcy is all they do. No other law firm is better qualified to bring you the fastest debt relief, and do it right the first time. For a free consultation, call 504-828-3311 or visit www.kirkpatrickandassociates.com.
Article Source: Articles For Knowledge Sharing
About the Author
Brian Reed. Metairie bankruptcy When filing for bankruptcy in Louisiana, the attorneys at Kirkpatrick and Associates know what they are doing because bankruptcy is all they do and have a proven track record in succeeding.
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Date: Wed, 27 Oct 2010 -
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